NRJ GROUP (NRG.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:NRG - FR0000121691 - Common Stock
7.41 EUR
-0.09 (-1.2%)
Overall NRG gets a fundamental rating of 6 out of 10. We evaluated NRG against 68 industry peers in the Media industry. NRG gets an excellent profitability rating and is at the same time showing great financial health properties. NRG is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year NRG was profitable.
- NRG had a positive operating cash flow in the past year.
- In the past 5 years NRG has always been profitable.
- NRG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.53%, NRG is in the better half of the industry, outperforming 79.10% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 5.83%, NRG is in line with its industry, outperforming 50.75% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 4.06%, NRG is in line with its industry, outperforming 47.76% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for NRG is below the industry average of 7.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.53% | ||
| ROE | 5.83% | ||
| ROIC | 4.06% |
ROA(3y)4.46%
ROA(5y)4.24%
ROE(3y)5.78%
ROE(5y)5.55%
ROIC(3y)4.38%
ROIC(5y)3.42%
1.3 Margins
- NRG has a better Profit Margin (10.14%) than 86.57% of its industry peers.
- In the last couple of years the Profit Margin of NRG has grown nicely.
- The Operating Margin of NRG (10.50%) is better than 68.66% of its industry peers.
- NRG's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 86.49%, NRG belongs to the top of the industry, outperforming 83.58% of the companies in the same industry.
- In the last couple of years the Gross Margin of NRG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.5% | ||
| PM (TTM) | 10.14% | ||
| GM | 86.49% |
OM growth 3Y3.36%
OM growth 5Y8.52%
PM growth 3Y11.64%
PM growth 5Y13.65%
GM growth 3Y2.19%
GM growth 5Y8.65%
2. Health
2.1 Basic Checks
- NRG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, NRG has about the same amount of shares outstanding.
- NRG has about the same amout of shares outstanding than it did 5 years ago.
- Compared to 1 year ago, NRG has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.81 indicates that NRG is not in any danger for bankruptcy at the moment.
- The Altman-Z score of NRG (3.81) is better than 95.52% of its industry peers.
- NRG has a debt to FCF ratio of 0.88. This is a very positive value and a sign of high solvency as it would only need 0.88 years to pay back of all of its debts.
- NRG's Debt to FCF ratio of 0.88 is amongst the best of the industry. NRG outperforms 91.04% of its industry peers.
- NRG has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
- NRG has a better Debt to Equity ratio (0.04) than 91.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.88 | ||
| Altman-Z | 3.81 |
ROIC/WACC0.52
WACC7.81%
2.3 Liquidity
- NRG has a Current Ratio of 3.44. This indicates that NRG is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Current ratio value of 3.44, NRG belongs to the best of the industry, outperforming 98.51% of the companies in the same industry.
- NRG has a Quick Ratio of 3.38. This indicates that NRG is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Quick ratio value of 3.38, NRG belongs to the best of the industry, outperforming 98.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.44 | ||
| Quick Ratio | 3.38 |
3. Growth
3.1 Past
- NRG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.61%.
- The Earnings Per Share has been growing by 14.07% on average over the past years. This is quite good.
- NRG shows a small growth in Revenue. In the last year, the Revenue has grown by 1.14%.
- NRG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.36% yearly.
EPS 1Y (TTM)-6.61%
EPS 3Y14.98%
EPS 5Y14.07%
EPS Q2Q%-25.86%
Revenue 1Y (TTM)1.14%
Revenue growth 3Y3.01%
Revenue growth 5Y0.36%
Sales Q2Q%-1.05%
3.2 Future
- The Earnings Per Share is expected to decrease by -4.07% on average over the next years.
- NRG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.92% yearly.
EPS Next Y-18.92%
EPS Next 2Y-8.96%
EPS Next 3Y-4.07%
EPS Next 5YN/A
Revenue Next Year-18.05%
Revenue Next 2Y-9.13%
Revenue Next 3Y-5.71%
Revenue Next 5Y-3.92%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 13.72, which indicates a correct valuation of NRG.
- Compared to the rest of the industry, the Price/Earnings ratio of NRG indicates a somewhat cheap valuation: NRG is cheaper than 61.19% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of NRG to the average of the S&P500 Index (28.82), we can say NRG is valued rather cheaply.
- A Price/Forward Earnings ratio of 16.30 indicates a correct valuation of NRG.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NRG is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, NRG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 16.3 |
4.2 Price Multiples
- 91.04% of the companies in the same industry are more expensive than NRG, based on the Enterprise Value to EBITDA ratio.
- NRG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.24 | ||
| EV/EBITDA | 3.56 |
4.3 Compensation for Growth
- The decent profitability rating of NRG may justify a higher PE ratio.
- NRG's earnings are expected to decrease with -4.07% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y-8.96%
EPS Next 3Y-4.07%
5. Dividend
5.1 Amount
- NRG has a Yearly Dividend Yield of 3.87%. Purely for dividend investing, there may be better candidates out there.
- NRG's Dividend Yield is a higher than the industry average which is at 3.08.
- NRG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
5.2 History
- On average, the dividend of NRG grows each year by 14.87%, which is quite nice.
Dividend Growth(5Y)14.87%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
- 62.70% of the earnings are spent on dividend by NRG. This is not a sustainable payout ratio.
- The Dividend Rate of NRG has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP62.7%
EPS Next 2Y-8.96%
EPS Next 3Y-4.07%
NRJ GROUP / NRG.PA FAQ
What is the ChartMill fundamental rating of NRJ GROUP (NRG.PA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to NRG.PA.
Can you provide the valuation status for NRJ GROUP?
ChartMill assigns a valuation rating of 5 / 10 to NRJ GROUP (NRG.PA). This can be considered as Fairly Valued.
Can you provide the profitability details for NRJ GROUP?
NRJ GROUP (NRG.PA) has a profitability rating of 7 / 10.
What is the financial health of NRJ GROUP (NRG.PA) stock?
The financial health rating of NRJ GROUP (NRG.PA) is 8 / 10.
How sustainable is the dividend of NRJ GROUP (NRG.PA) stock?
The dividend rating of NRJ GROUP (NRG.PA) is 5 / 10 and the dividend payout ratio is 62.7%.